In recent conversations with market participants SteelMint learned that, imported scrap market has observed limited quantity deals in Bangladesh at prices lower by USD 5/MT W-o-W. Moreover, weakened sentiments in domestic market have dragged local steel prices further down in last couple of days. Heavy rains in major steel producing regions have affected construction activities and end user demand for finish steel severely in the country.
Last week local market had observed few signs of improvement in local steel demand however, buying interest remains subdued for finish steel. On the other hand, scrap importers have continued limited quantity bookings in containers following sharply declined prices in the global market.
In recent trade deals, Shredded 211 scrap from UK sold in containers in the range of USD 369-372/MT, CFR Chittagong. A steelmaker booked 2000 MT of Shredded scrap at USD 371/MT from UK supplier. Buyers biddings for Shredded 211 scrap from UK and Brazil stand at USD 370/MT levels. Last week price levels were at USD 368-375/MT, CFR Chittagong.
In line with this, HMS 1 from South Africa sold at USD 355-356/MT, CFR levels and HMS 1&2 (80:20) offers remain in the range of USD 340-350/MT depending on various origins like Chile, UK and Europe which has remained almost stable as against report last week.
Around 2000 MT of West African HMS scrap booked at USD 332/MT, CFR Chittagong levels yesterday.
“Bangladesh importers are buying scrap continuously as per their requirements but inventories are still not considerably high. Ship breaking market witnesses few sales keenly in order to maintain banking terms” shared a re-roller.
Domestic scrap prices in Bangladesh turn down by BDT 300-500/MT – Local scrap prices in Bangladesh have turned down by BDT 300-500/MT in last couple of days after seeing marginal growth towards closing of the last week. Now prices stand at around BDT 35,000-35,500/MT (USD 415-421), ex-works. Domestic ship cutting plate scrap prices heard at BDT 41,400/MT for below 12 mm, at BDT 42,400/MT for (16-20 mm) and at BDT 43,500/MT for size more than 20 mm thickness.
Offers for local rebar for medium-scale producers are at around BDT 59,000-61,000/MT (USD 700-723) ex-works, Chittagong including 15% taxes.
Bangladesh remains active in Ship breaking – Bangladesh ship buyers have dropped offers further despite ongoing steady sentiments. Prices assessed at USD 410/LDT for general dry bulk cargo, at USD 425/LDT for tanker cargo and at USD 435/LDT for containers on CNF Bangladesh basis. One oil tanker heard to have sold at USD 427/MT and a dry bulk cargo fetched USD 417/MT, CNF Bangladesh.
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